Tuesday, 19 May 2020 09:32

Fallout from food service sector collapse

Written by  Peter Burke
Mike Petersen. Mike Petersen.

The virtual collapse of the international food service sector may have an adverse effect of some exports of New Zealand meat.

According to the country’s former Special Trade Envoy, Mike Petersen, it will be a long time before the food service sector bounces back. He told Rural News that that a lot of NZ companies have been rightly chasing high-value markets with a focus on the food service sector.

“I believe there will be a lot of casualties in that space in the international markets, ranging from master importers, who are supplying restaurants and cafes, through to retail customers themselves,” Petersen says. 

“The collapse of the food servicing sector will really hurt and the fact that we are heading into the holiday season in the northern hemisphere where there won’t be a tourist season this year is going to make demand quite subdued.”

Petersen says two of the casualties – in terms of product – are likely to be venison and premium cuts of lamb, which tend to go into the fine dining restaurants and cafes. He says the high-priced cuts are going to be challenging to sell. 

However, he says on the positive side lower priced meats will likely come through the COVID-19 crisis well. He points to the example of beef and says because it is seen as a comfort food, prices could potentially rise.

“People will be looking for the likes of hamburgers, takeaways and meat that can easily be cooked at home.” 

Petersen says given the chaos in the US market, there may be some short-term opportunities for gaps to be filled by NZ meat, while processing plants there are closed due to COVID. He says there are also promising signs in China as that market opens up. 

Petersen says the outlook for apples and kiwifruit also looks good as consumers seek healthy foods. He also acknowledges though that dairy prices, especially for high value consumer products, may be down.

“My big concern remains what will happen in the light of the collapse of the food service sector around the world and what impact that may have on NZ in the coming season,” he says.

More like this

Overstayers irk farmers

A new law preventing the eviction of tenants from rental properties is causing a headache for some dairy farmers.

Distributor focussing on farmer support

AGCO Australia and New Zealand has announced plans focused around protecting the welfare and livelihood of its customers, employees and the community during the COVID-19 pandemic. 

Fonterra’s big break

Former Fonterra chairman Sir Henry van der Heyden believes the co-operative will come out a stronger global player post-COVID-19.

Featured

ANZCO makes a $30m profit

Meat company ANZCO Foods recorded its best-ever revenue of $1.7b and a net profit before tax of $30.6m for the year ended 31 December 2019.

 

M. bovis – we’re making headway

Ministry for Primary Industries chief science adviser, Dr John Roche on the indications New Zealand is winning the fight against Mycoplasma bovis.

Delays ruled out on water reforms

Delaying the introduction of new water reforms was not an option according to the two cabinet Ministers directly involved – Environment Minister David Parker and Agriculture Minister Damien O’Connor.

$700m for freshwater clean up

The Government has announced a $700 million fund to support the primary sector and other groups in meeting new clean water standards.

» The RNG Weather Report

» Latest Print Issues Online

The Hound

Dirty water

The Hound understands that Federated Farmers has been cut out of the information loop, for the past year, on the…

Who’s paying?

Your canine crusader noticed a full-page ad recently run in a farming paper calling on meat companies SFF and Alliance…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter

Popular Reads

Drop in payout looms

Dairy farmers are being told to brace for a big drop in milk payout next season.